Agnico-Eagle says greenshoe exercised on convertibles, raising size to $143.75 million

New York, Feb. 15 - Agnico-Eagle Mines Ltd. said the underwriters of its recent offering of 4.50% convertible unsecured subordinated debentures due 2012 exercised the over-allotment option, raising the total size to $143.75 million.

The Toronto, Canada gold producer originally sold $125 million of the convertibles on Jan. 30 with a yield of 4.5% and an initial conversion premium of 14.75%. Lead manager was Scotia Capital Markets. The greenshoe, exercised in full, adds a further $18.75 million to the amount.

"With interest rates at 40-year lows, the refinancing of our convertible debentures has provided Agnico-Eagle with a long-term source of inexpensive financing," said Sean Boyd, president and chief executive officer of Agnico-Eagle, in a news release. "Agnico-Eagle is in the strongest financial position in its over 30-year history with available cash and bank credit lines of approximately US$130 million which puts us in an excellent position to continue to create value at LaRonde and pursue additional growth opportunities."

Agnico-Eagle said it is using $120.9 million of the proceeds to redeem its convertible notes due 2004. The remainder will be used for general corporate purposes, which may include repaying debt on its revolving credit facility.

The company said holders of the 2004 notes will be paid the redemption price of $965.87 per $1,000 principal amount on March 18.

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